Course description

UDAAP continues to evolve and now “junk fees” have become an issue with the regulators. With new proposals coming out that address what junk fees are, can banks continue to operate with the “business as usual” mindset?


Recently, the CFPB has been particularly focused on junk fees—unexpected or hidden fees that consumers often encounter in banking and other financial services. These fees can include overdraft fees, non-sufficient funds (NSF) fees, and various other charges that can add up and surprise consumers. The CFPB has taken several steps to address these issues, including proposing new rules that prohibit certain types of junk fees and expanding its enforcement efforts to prevent unfair discrimination in financial products/


In January 2024, the CFPB proposed a rule to block banks and other financial institutions from charging NSF fees on transactions that are declined in real time, such as declined debit card purchases and ATM withdrawals. This proposed rule is part of the CFPB's broader initiative to reduce exploitative junk fees and save households billions of dollars each year. The CFPB has also been working to uncover and eliminate illegal junk fees in various financial markets, including bank accounts, mortgages, and student and auto loans.


UDAAP is here to stay but now you need to be aware of additions from the regulators that are now off limits. This session will help you digest what is and is not a junk fee and what will continue to be covered by this new category.
 

Specific Areas Covered:

  • We will discuss the various groups of “junk fees” according to the CFPB.
  • We will review where this issue is in the regulatory regime with regard to final rules or proposed rules.
  • We will also address related data gathering efforts the regulators are involved with and what you can do now to protect your compliance program from running afoul of this changing new compliance area. 
  • Policies and procedures-what changes will you need to make to address these areas and is there another phase to move through before you need to take action with regards to your current contracts, loan agreements, and other pertinent documents.


Specific Take-aways:

  • How to adjust your compliance program to stay away from the top areas that are considered “junk fees” to keep in mind.
  • New training aspects of this new concept-who and what all will need to be covered?
  • New policy and procedure updates-we will address the specific regulatory areas that are in the biggest bull’s eye so that you can avoid them. 

Instructor(s)

Maureen Carollo, CRCM, CAMS

Maureen E. Carollo is SVP, Director of Compliance for Sovereign Bank in Oklahoma City, a $1.2 billion community bank. She was most recently Chief Compliance & Chief Risk Officer, SVP, for Old Glory Bank and has over 35 years of experience in the deposit operations, loan administration, compliance management, internal audit and BSA/AML/CFT management areas and holds the Certified Regulatory Compliance Manager (CRCM) designation and the Certified Anti-Money Laundering Specialist (CAMS) certification. She is a graduate of the Southwestern Graduate School of Banking at SMU in Dallas, Texas, and graduated with recognition for leadership. She serves on the “ABA Bank Compliance” magazine Editorial Advisory Board, where she has had multiple articles and columns published. She has also received an APEX Award for “Excellence in Publishing.” She has been a regular speaker for the ABA Regulatory Compliance Conference, where she serves on the Advisory Board and was awarded the 2021 “Distinguished Service Award” for Compliance. She has also regularly spoken at events for Marquis Centrax, CbanC and Bankers Online. She is also active in the Oklahoma Bankers Association, where she has been past Chairman of the Compliance School Board of Regents and has served on the Board for over 20 years. She is also a frequent speaker for the OBA’s Compliance School and past speaker for their Operations School, Consumer Lending School, and Intermediate Banking School.

Course curriculum

  • 1

    UDAAP and Junk Fees-What You Need to Know

    • Watch Playback
  • 2

    Materials

    • UDAAP & Junk Fees 11-13-24 Slides

    • CFPB Unfair Deceptive Abuse Acts Practices (UDAAPS) Procedures

    • Consumer Compliance Supervisory Highlights

    • CFPB Takes Action to Stop Banks from Harvesting Overdraft Fees Without Consumer Consent

    • CFPB - Junk Fees

    • CFPB - Junk Fees are Driving Up Housing Costs

    • CFPB Orders Navy FCU to Pay More than $95 Million for Illegal Surprise Overdraft Fees

    • CFPB Orders VyStar CU to Pay $1.5 Million for Illegally Stranding Consumers from Accessing Their Money and Accounts

    • CFPB Orders Apple and Goldman Sachs to Pay Over $89 Million for Apple Card Failures

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